The FHSA + RRSP Super-Stack: How First-Time Buyers Can Access $100K+ Tax-Free
By Kerri Carter
Heading into spring 2026, the tools available to first-time buyers are more powerful than most people realize. You don’t have to rely on a plain savings account anymore. By stacking two federal programs together, a single buyer can access over $100,000 tax-free for a down payment — and a couple can access more than $200,000.
| Individual | Couple | |
|---|---|---|
| FHSA | $40,000 | $80,000 |
| RRSP (Home Buyers’ Plan) | $60,000 | $120,000 |
| Combined power | $100,000+ | $200,000+ |
The FHSA is a true hybrid
Despite what a lot of people assume, the First Home Savings Account isn’t just “another TFSA.” It gives you the upfront tax deduction of an RRSP and the tax-free withdrawals of a TFSA — it’s essentially the government handing you free money to help you buy sooner.
| Feature | FHSA | RRSP (Home Buyers’ Plan) |
|---|---|---|
| Tax deduction? | Yes — lowers taxable income | Yes — lowers taxable income |
| Withdrawal tax? | Zero, on growth and principal | Zero, up to $60,000 |
| Repayment required? | No — it’s yours to keep | Yes — repaid over 15 years |
| 90-day holding rule? | No | Yes — funds must sit for 90 days first |
Your stacking order of operations
- Max out the FHSA first. Since there’s no repayment requirement, this is your highest-value account. A lot of buyers who opened accounts back in 2023 are hitting their full $40,000 lifetime limit right about now.
- Fill the RRSP for the HBP next. Once the FHSA is capped, the RRSP is your second, much larger pool — up to $60,000 through the Home Buyers’ Plan.
- Use the tax refund as a booster. Both accounts are tax-deductible, so maxing them out can generate a refund in the $5,000-$8,000 range. Put that straight back into your down payment fund for an instant top-up.
A note on the repayment grace period: if you made your RRSP withdrawal between 2022 and 2025, you still get the 5-year grace period before repayments start. For withdrawals made new in 2026, the grace period is back to the standard 2 years. Either way, you’ve still got 15 years to repay, so there’s a lot of flexibility built in.
If you’re sitting on savings across a few different accounts and aren’t sure how to sequence the withdrawals, reach out and we’ll map out your stack together.
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